Audio streaming subscription service Spotify Technology has announced it is buying podcast advertising and publishing platform Megaphone.

The two plan development of Megaphone Targeted Marketplace with the availability of Spotify's streaming ad insertion to third-party podcast publishers.

"Advertisers will now be able to activate across Spotify's Original & Exclusive podcasts while scaling reach through the Megaphone Targeted Marketplace," said a spokesperson.

For podcast publishers, the acquisition will unlock tools to help them earn more, including the opportunity to opt-in to have their content monetised.

Spotify says it will soon make streaming ad insertion available to all podcast publishers on Megaphone.

"We are still in the early chapters of the streaming audio industry story, but it is absolutely clear that the potential is significant," said Spotify's chief content and advertising business officer Dawn Ostroff.

Closing of the transaction is subject to customary regulatory approvals.